The Hang Seng Index opened down 258 points, Alibaba fell over 2%, and Vanke's domestic bond extension failed, dropping over 5% | Hong Kong stock market opens
The Hang Seng Index opened 258 points lower this morning, reporting at 25,718 points. Alibaba's stock price fell by 2.1%, and Vanke's domestic bond extension failed, causing its stock price to drop by 5.4%. HSBC announced that the consideration for the privatization plan of Hang Seng is HKD 155 per share and will not be increased. The market is concerned about the impact of the Bank of Japan's interest rate hike on global stock markets, and it is expected that the Hang Seng Index will maintain a range of 25,000 to 26,300 points in the short term
The market generally expects the Bank of Japan to raise interest rates by a quarter of a percentage point this Friday (19th) and is concerned whether this will lead to a repeat of the yen liquidation crisis from last August, becoming a key factor in the direction of global stock markets. Some analysts point out that the likelihood of a financial crisis triggered by Japan's interest rate hike is low, predicting that the Hang Seng Index will remain within the range of 25,000 to 26,300 points.
Jack Ma Meets with Rwandan President
The Hang Seng Index opened 258 points lower this morning, reporting at 25,718 points. Tech stocks generally declined, with Alibaba (9988) founder Jack Ma and Yahoo co-founder Jerry Yang appearing in Kigali, the capital of Rwanda, yesterday to participate in the "African Business Heroes" event, where they met with Rwandan President Paul Kagame; the stock opened at HKD 150.8, down 2.1%.
Among other tech stocks, Tencent (700) fell 1.6%; Meituan (3690) dropped 0.8%; JD.com (9618) and Xiaomi (1810) fell 0.6% and 1.5%, respectively; Baidu (9888) dropped over 3%.
HSBC's Privatization of Hang Seng Will Not Increase Offer Price
On the other hand, HSBC (005) announced that the proposed offer price for the privatization of Hang Seng (011) is HKD 155 per share, which will not be increased under any circumstances, and the proposal will be voted on January 8 next year; both stocks saw little change this morning, with declines of 0.8% and an increase of 0.1%, respectively.
Related Article: HSBC's HKD 155 Privatization of Hang Seng to Vote on January 8 Next Year
Vanke Plans to Hold Bondholders Meeting Again on December 18
In individual stock news, Vanke (2202) has not received creditor support for the extension plan of its domestic bond "22 Vanke MTN004," leaving about 5 working days of grace period to raise funds, with the final payment deadline around December 20, and plans to hold a second bondholders meeting on December 18. The stock opened at HKD 3.48 this morning, down 5.4%.
Related Article: Vanke's Domestic Bond Extension Proposals Not Approved, 5 Working Days Left for Negotiation
Eddie Wu: Hang Seng Index to Fluctuate Between 25,000 and 26,300 in the Short Term
Eddie Wu, Vice Chairman of the Hong Kong Stock Analysts Association, stated that external weakness will put pressure on Hong Kong stocks this week, while institutional investors in Hong Kong have already entered holiday mode, with funds disinterested in trading. Expectations for mainland policies have repeatedly fallen short, estimating that without substantial economic stimulus policies from the mainland, the Hang Seng Index will remain within the range of 25,000 to 26,300 points in the short term.
Expected Not to Trigger Yen Carry Trade Liquidation Wave
Regarding market concerns about whether the Bank of Japan's interest rate hike will lead to a repeat of last August's sharp decline in global stock markets, Eddie Wu stated that the market has already anticipated the Bank of Japan's interest rate hike. Unless the rate hike exceeds expectations or the central bank signals a series of rate hikes, it will not trigger a massive liquidation wave of yen carry trades, leading to a significant decline in global stock markets. He admitted, "Last time was unprepared, this time the market is mentally prepared." The so-called "Yen carry trade" refers to hedge funds borrowing low-interest yen and then exchanging it for US dollars or other currencies to trade for profit in global stock markets; if Japan raises interest rates, these hedge funds may sell stocks to cash out and then repay their yen loans, which is known as unwinding.
Looking ahead to this week, central banks in the UK, Europe, Japan, Thailand, and Indonesia will announce their latest interest rate decisions. At the same time, the US will release its first non-farm payroll report after the government shutdown, including partial data for October and complete data for November, and the latest US CPI data will also be released this week. Additionally, China's November "three drivers" data and the loan market quoted interest rate (5 years) will also be announced this week
